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Coronavirus crisis presents opportunity for Saudi's Newcastle project

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AFP London
Last Updated : Apr 22 2020 | 7:12 PM IST

A Saudi-backed takeover of Newcastle United appears to be nearing completion at a time when the rest of the football industry is on its knees due to the economic crisis caused by the coronavirus pandemic.

For Saudi Arabia's Public Investment Fund (PIF), led by Crown Prince Mohammed bin Salman, the crisis presents a commercial opportunity and a chance to break into the lucrative Premier League.

But the potential 300 million pound (USD 370 million) deal, which will reportedly see the Saudi fund take an 80 percent stake in the club, is facing fierce opposition from human rights groups and one of Saudi's regional rivals.

The Premier League bubble is close to bursting as clubs scramble to avoid losing hundreds of millions in broadcast rebates if the season is not completed and a deep recession threatens income from gate receipts, merchandise and sponsorship.

As a result, transfer fees are expected to drop sharply while wages will also be depressed, with even the world's wealthiest clubs now hastily arranging pay cuts or deferrals with their star players.

- Rights concerns - ===================
- Manchester City template - ============================

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First Published: Apr 22 2020 | 7:12 PM IST

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